Week 5B- Regulatory Enforcement and Compliance Flashcards
List Main limits of Regulatory Standards
-Overinclusivenss
-Indeterminacy
-Interpretation
Explain the problem of inclusiveness
- Reg. standards are gen. to apply to multiple situations
-risk the reg. turns out 2 be too inclusive
TRUE or FALSE: sharp purposive interpretation is a way of combating the problem of inclusiveness
TRUE
Explain the problem of indeterminacy
- Rules, by their nature cannot be conclusively determined-nature of language
-og lawmakers cannot encapsulate what they mean 2 apply for all future eve. + possibilities
NB: remember open-ended standards
Explain the problem of interpretation
- Stand. are always up to interp.
-need audience(regulators) which is:
-symph. 2 purpose to app. based on purp. (purposive interp.)
-understand context (context. interpre.)
-In general, understand how the markets work (expertise)
TRUE or FALSE: Principles-based regulation does not inclued open-ended questions
-FALSE
TRUE or FALSE: open-ended standards, and thus principles-based regulation, fuels indeterminacy
TRUE
Explain the Principle Issue of Regulatory Enforcement and Compliance
- How to ensure the effec. of enforcement 2 achieve. public goals with
- limits of reg standards
Name the main enforcement modes
1) Pub. Enforcement
2) Priv. Enforcement
3) Hyb. Enforcement
Explain what Public Enforcement means in regards to Regulatory Standards.
1.Supervis. and enforce. of reg. stand
2. Public author.
3. Pub. law means (adm. law + crim. law)
4. FUNCT. ex ante
Explain the strengths of Pub. enforcement
- pub. interest ON TOP
- Informat. gather. powers incr. (cus can req. information)
- Ability 2 adjust enforce. strat. 2 achieve des. level of det.
Explain the weaknesses of Pub. Enforcement
- Enforce. as a whole limit. by budg. restrict.
2.Risk of reg. cap. - High pub. costs–> more enf. = more tax. money
Explain what compliance is?
-Instant compliance?
-or a long-term process that make take years
TRUE or FALSE: The questions of what compliance is, is an open-ended question.
TRUE
Explain what private enforcement is
- Enforce. of reg. stand.
- through priv. law means
-i.e civil liability
3.by priv. parties- FUNC. ex-post but may also hv det. effect
- through priv. law means
Who can bring matters regarding regulatory standards to civil courts?
- Individuals (individu. enforce.)
- Groups(e.g:consum. org.) (coll. enforce.)
Explain the strengths of Private Enforcement
- Combines interper. justice (thru civ. liab) with pursuit of pub. goals (deterrence)
2.Out. persp. on integrity of pub. enf. authori - Financ. by priv parties (not finance. by tax.)
Explain the weaknesses of Priv. Enforcement
- Driv. by private interests for public justice
-priv. parties may lack since. 2 sue
-rat. apathy
-free-riding. problems - Insufficeint Information gathering capacity. (can’t really force people to give info.)
Where can private enforcement take place?
-before civil courts-judicial enforcement
-ADR (alt. disp. resolution) (Extrajudicial)
Explain what hybrid eforcement is
-The involve. of reg. agencies (public)
-in the prov. of private. redress
What are the ways that hybrid enforcement is implemented
-Complementarity model
-Integration model
Explain what the complementarity model is
-Indirect facilitation of
-priv redress
Explain which two ways the complementarity model can be imple.
-Threats of fines
-Bringing collective action
Explain how the complimentarity model can address noncompliance?
-Deterrence
-pub. author.
- Interperson. justice:
-help drive civil cases/ compensation
Explain what the integration model of hybrid enforcement is
-reg. agency directly demand. comp. for indiv.
-compens. is part of adm. enforcement (no need go to court)
Explain the ways in which the integration method is implemented
- JUST ASK FOR THE DAMN COMP
Explain how the integrat. model can address noncompliance
-Deterrence
-public authority
-Interrpersonal justice
-oblige to give comp. and give to individuals
-Substitu. courts
-faster, more efficient
TRUE or FALSE: in the complimentarity model the instu. sep. between agencies and civil courts along the lines of det. and comp. is abandoned
-FALSE: complim model cannot directly enforce compensation, so not comp “abandoned”
-but can greatly pressure
-NB: remember the above phrasing
List the ideal enforcement types
-Penal
-Conciliatorty
Explain what regulatory conversations are
- when regulatees talk to rep. of public regulation agenc.
List the three occasions for reg. coversations
-Guidance and waivers
-Sup. Rule form.
-Monitor. and enforcem.
-instr. on HOW to comply
NB: double check on this
Describe the characteristics of a penal style of enforcement
-Ref. (post)
-Main task: det. what harm was
-Accus. + adver. rel. with regu. entitees
Describes the characteristics of a conciliatory style of enforcement
-Prospective–> not punish. right about
-Main task: responding to a prob. + nego. future conf. stand.
-barg. and coopertaton with regu. entity
Explain what a prospective style of enforcement is
-Not punish right away
-Identify problem and negotiate + convince 2 conform to standards in future
List the factors which determine how penal and conciliatory enforcement is?
-Legal design
-(the ext. 2 which regulat. has power)
-Task environment
-2 what extent are regulatees willing to comp.
-severity of risks
-Political env
Explain what the enforcement pyramid is
-The pyrmid which shows the PROG. STEPS
-to take if regulat. continues to not comp.
-Concillitory–> penal (escalation)
List the phases of the enforcement pyramid in chronological order
- Persuas.
2.Warning letter
3.Civil penal.
4.Crim. Penalty - Licence suspen.
- Licenc. revoca.
Explain the concerns with the enforcement pyramid
-If you keep on escal. based on noncomp. might be disprop. 2 illegal act
-Can elicit acts whic. are against consti. values
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